Franklin County Assessor
Business Property Tax Credit Notice
The Franklin County Assessor, Gwana Wirtjes, would like to inform business property owners of legislation which was signed into law by the Governor in June 2013.
Senate File 295 established a business property tax credit for commercial, industrial and railway property. Each person who wishes to claim the credit shall obtain the appropriate forms from the County Assessor and file the claim with the assessor before January 15, 2014, in order to receive the credit for taxes payable in 2014/15. Parcels classified and taxed as commercial property, industrial property or railway property, under chapter 434, may be eligible for a credit. A person may claim and receive one credit under this chapter for each eligible parcel unless the parcel is part of a property unit.
All of the following shall not be eligible to receive a credit under this chapter or be part of a property unit that receives a credit:
as those terms are defined in Section 441.21, subsection 13, as enacted in division III of this Act, or that is property primarily used or intended for human habitation containing three or more separate dwelling units.
For more information on the business Property Tax Credit, including the application form, visit the Department of Revenue's Property Tax Reform webpage.
Additionally, you can sign up for the Department's Property Tax Reform eList. You may apply for the credit at the Assessor's office in the Franklin County Courthouse in Hampton, Iowa, or you may contact the Assessor's office at 641-456-5118 or for further information.
2017 - Assessment Information
CSR2 – (Franklin County implemented in 2015)
The 1st was switching to the new CSR2 soil rating system that has been in development at Iowa State University. Some soil types may have a higher CSR2 rating and some a lower rating than they had previously under the original CSR system. We are using the CSR2 ratings as found on the NRCS website for 2017. It is anticipated that these ratings may change occasionally in future years. Minimal change for 2017 with less than .05% change. The average tillable CSR2 for Franklin County is 80.
Agricultural Adjustment Rule
The 2nd is the implementation of the Agricultural Adjustment Rule 71.3(1) as passed by the State in 2013, which included adjusting for building sites. It requires Non‐Crop land that has a CSR2 of or greater than half the county average CSR2 be adjusted by the ratio between Franklin County cash rent for crop- land and pastureland, which is currently 81%.
The assessed value of Agricultural Land is determined by the Iowa Agricultural Productivity Formula and based on a five‐year rolling average (currently 2011-2015) that takes into account factors at a County level such as acres in production, number of bushels produced and average market value of the crop. The total County Value as determined by the Formula is divided by the total County CSR2 points, to determine the $ value per CSR2. A price per CSR2 point is determined and applied to every agricultural parcel equally in the county.
The increase in assessments will be mitigated by the 3% limitation of statewide taxable growth. This is accomplished by reducing the assessed value by a factor determined by the Department of Revenue known as the rollback. The projected roll back is not known at this time for 2017 assessment for agricultural land and buildings.
Commercial Real Estate:
Commercial properties are to be assessed at 100% market value. A sales ratio study by class, the comparison of assessed value to sales prices, is used to determine how the assessed values compare to market value. Commercial assessments are to be within the 95% to 105% median ratio to avoid an equalization order from the Iowa Department of Revenue and Finance and be in compliance with Iowa Code. The assessed value of commercial structures changed minimal if any for 2017. Changes in value are due to condition/construction +/-.
Residential Real Estate:
Residential properties are to be assessed at 100% market value. A sales ratio study by class, the comparison of assessed value to sales prices, is used to determine how the assessed values compare to market value. Residential assessments are to be within the 95% to 105% median ratio to avoid an equalization order from the Iowa Department of Revenue and Finance and be in compliance with Iowa Code. The values on residential and Ag dwellings were revalued due to the overall sales ratio being too low, and by condition/construction +/- for 2017. No two properties are exactly alike, not all properties are maintained to the same standards, and the age old saying “location, location, location” all factor into the overall assessment of each property.
Multi Residential Property Classification – 2017
The multi-residential property classification took effect for 2015 and applies to properties used for human habitation containing three or more separate dwelling units, specifically apartments, mobile home parks, manufactured home communities, land-leased communities and assisted living facilities.
In the past these properties were classified as commercial and were taxed at the commercial effective tax rate.
Multi –residential gets a phased in rollback which increases until it matches the residential rollback in 2022.
The class allows for dual classification on a single parcel when a portion of a building is used for human habitation, regardless of the number of dwelling units. That portion of the building used for human habitation will be classified multi-residential, and the remaining portion will be classified based on its primary use.
The Iowa Department of Revenue has the option to issue an equalization order in the fall to bring the assessments into compliance.
Homestead & Military Applications
Assessor Contact Information
Franklin County Courthouse
12 - 1st Ave. NW
PO Box 575
Hampton, Iowa 50441
8:00 am - 4:00 pm
Monday - Friday
Chief Deputy Assessor